Do I need to undergo an SOC 2 audit every year, or is it a one-time exercise?

Yes, you need to undergo a SOC 2 audit every year. While the audit itself isn’t a one-off, it is essential to show your customers and prospects that you’re consistently compliant with SOC 2 guidelines. That’s why it’s recommended to undergo audits annually.

These audits provide evidence that your security practices are up-to-date and reliable. Here’s how it works for the types of SOC reports:

SOC 1 Report

A SOC 1 report focuses on the controls relevant to financial reporting. If your organization provides services that could impact your client’s financial statements, this is the report they’ll be looking for. It comes in two flavors—Type 1 and Type 2, similar to SOC 2.

• SOC 1 Type 1: This report examines your controls at a specific time—think of it as a snapshot. However, it doesn’t cover a continuous period, so its relevance is tied to that date.
• SOC 1 Type 2: This one goes further, evaluating the effectiveness of your financial controls over a period of time, typically 6 to 12 months. The report’s validity aligns with the period it covers, and many organizations opt to renew it annually to maintain compliance.

SOC 2 Report

Many organizations conduct annual SOC 2 Type 2 assessments, which offer a solid picture of how well their controls have been operating throughout the year. However, the reporting period can vary depending on your needs and what your clients or partners require.

• SOC 2 Type 1 Report: The SOC 2 Type 1 report evaluates how your controls are designed then, but it doesn’t cover an ongoing period. This type of report is usually tied to a particular date, and while it isn’t necessarily issued every year, some organizations choose to update it annually or whenever clients request it.
• SOC 2 Type 2 Report: On the other hand, a SOC 2 Type 2 report digs deeper, assessing the effectiveness of your controls over a period of time—usually at least six consecutive months.

SOC 3 Report

A SOC 3 report is essentially a more public-friendly version of the SOC 2 report. It’s a high-level summary to show that your organization meets the required trust service criteria without diving into the technical details.

Like SOC 2 Type 2, a SOC 3 report generally covers a period of 6 to 12 months. Organizations usually update their SOC 3 reports annually to ensure they remain valid and provide up-to-date assurance to customers and stakeholders.